China June Copper Imports Likely High Amid Strong SHFE Volumes -Barclays-Shanghai Metals Market

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China June Copper Imports Likely High Amid Strong SHFE Volumes -Barclays

Industry News 09:58:03AM Jun 20, 2012 Source:SMM

Jun 19, 2012 (Dow Jones) BEIJING -- China's copper imports will likely stay at elevated levels in June, judging by the high daily volume of copper contracts traded on the Shanghai Futures Exchange, Barclays Commodities Research said in a note Tuesday.

"SHFE traded volumes have typically had a positive correlation with copper import volumes, with the month-on-month changes in import levels lagging SHFE traded volumes by between one to two months," Barclays analyst Nicholas Snowdon said.

Imports of copper and copper products in May rose 65% from a year earlier and 12% from April, bucking analyst expectations of a sequential decline.

However, Barclays noted that the trend tracked SHFE copper traded volumes, which rose from 453,000 contracts traded in March to 540,000 in April.

Traded volume rose 13% in May compared with April, and is so far up about 5% this month, Snowdon said in the note.

"This indicator at least weighs against the anticipation of sequential declines in import volumes mid-year."

Higher domestic physical prices and more attractive price differentials with London counterparts may have encouraged imports this month, underpinning spot copper prices, Barclays said.


 

Price

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1# Silver ingots(99.99%)
May.24
3509.0
18.0
(0.52%)
2# Silver ingots(99.95%)
May.24
3494.0
18.0
(0.52%)
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3479.0
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(0.52%)
Gold(99.99%)
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288.8
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(0.79%)
Gold(99.95%)
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288.5
2.0
(0.70%)

China June Copper Imports Likely High Amid Strong SHFE Volumes -Barclays

Industry News 09:58:03AM Jun 20, 2012 Source:SMM

Jun 19, 2012 (Dow Jones) BEIJING -- China's copper imports will likely stay at elevated levels in June, judging by the high daily volume of copper contracts traded on the Shanghai Futures Exchange, Barclays Commodities Research said in a note Tuesday.

"SHFE traded volumes have typically had a positive correlation with copper import volumes, with the month-on-month changes in import levels lagging SHFE traded volumes by between one to two months," Barclays analyst Nicholas Snowdon said.

Imports of copper and copper products in May rose 65% from a year earlier and 12% from April, bucking analyst expectations of a sequential decline.

However, Barclays noted that the trend tracked SHFE copper traded volumes, which rose from 453,000 contracts traded in March to 540,000 in April.

Traded volume rose 13% in May compared with April, and is so far up about 5% this month, Snowdon said in the note.

"This indicator at least weighs against the anticipation of sequential declines in import volumes mid-year."

Higher domestic physical prices and more attractive price differentials with London counterparts may have encouraged imports this month, underpinning spot copper prices, Barclays said.